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THE INVESTOR] South Korean share prices took a hit on Aug.3 on declining crude oil prices, with the benchmark KOSPI ending below the 2,000 point mark.
The Korean won weakened against the US dollar, closing at 1,117.6 won against the US dollar, down 7.6 won from Aug. 2.
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The benchmark KOSPI shed 1.2 percent, to 1,994.79. Trade volume was at 476.05 million shares worth 4.24 trillion won (US$3.82 billion), with losers far outnumbering gainers 556 to 253.
The tech-heavy KOSDAQ ended 0.37 percent lower at 698.32 points.
Local equities lost steam as crude oil fell below $40 per barrel for the first time since April on concerns over a supply glut, reviving concerns over global growth.
Foreigners ended a 19-day buying streak, turning to net sellers and offloading a net 78 billion won. Institutions dumped a net 204.28 billion won, while retail investors bought a net 253.36 billion won.
“The recent fall in crude oil prices could weaken the sentiment in the overall emerging market,” said Ryu Yong-seok, a researcher at Hyundai Securities. “In the short term, the market will be swayed by the oil prices.”
Market bellwether
Samsung Electronics shed 2 percent to 1,517,000 won, and top steelmaker POSCO sank 1.98 percent to 223,000 won.
Chemical shares also extended losses.
SK Innovation, the nation’s largest refiner, dropped 2.74 percent to 142,000 won, and No. 3 refiner
S-Oil slipped 1.95 percent to 75,300 won.
GS, which has subsidiaries such as GS Energy and GS Caltex under its wing, fell 0.32 percent to 47,250 won.
Auto shares dipped as the stronger local currency fueled concerns over the overseas price competitiveness of Koreanmade cars.
Hyundai Motor declined 1.49 percent to 132,000 won, and its sister company
Kia Motors decreased 1.8 percent to 41,000 won.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
